Hello, I’m Michael, and welcome to AGM, a place for private market enthusiasts to gather. I’m thrilled to introduce you to the AGM Alts Weekly, a dynamic newsletter I deliver every Sunday, brimming with news, trends, and insights on the ever-evolving private markets landscape. Each edition is packed with news articles, expert commentary, an index tracking publicly traded alternative asset managers, exclusive job listings in the sector, and engaging podcasts from Alt Goes Mainstream.
Join us in decoding the intricacies of private markets so you and your firm can stay ahead of emerging trends, navigating this fast-paced environment with confidence.
Now, let’s delve into LemonEdge—an innovative solution that’s revolutionizing fund, partnership, and portfolio accounting for private market investment firms. Supported by the likes of Blackstone Innovations Investments, LemonEdge simplifies complex back-office operations for General Partners, Venture Capitalists, Family Offices, and Fund Administrators. It’s an efficient way to manage diverse asset classes like equity, real estate, and infrastructure across various structures, offering embedded Excel-based calculations on management fees and waterfalls.
For a hands-on experience, don’t miss the opportunity to see LemonEdge in action!
On to my recent adventures: I just returned from Cannes, where I moderated a panel at IPEM Wealth on how fund managers are strategizing to tap into the wealth market. Joined by industry leaders like Alisa Wood from KKR and Peter Beske Nielsen from EQT, we tackled pressing themes affecting General Partners and Limited Partners in this booming industry segment.
Switching gears momentarily, let’s touch on sports. Last week, I mentioned the Washington Commanders, wrapping up their season with mixed emotions but high hopes for the future. Pivoting to European football, I attended a vibrant match in South London with friends from Evercore and Blackstone. There’s something unique about experiencing games in a community-embedded venue like The Den, home to Millwall with its iconic supporters.
Turning back to private markets, IPEM in Cannes unveiled an optimistic view of the wealth channel’s potential. Many General Partners are increasingly drawn to this space for capital raising, aligning with Alisa Wood’s assertion that we are entering a “golden age for private markets.” She highlighted the staggering $190 trillion of individual wealth as a key driver.
Efforts to integrate private markets with wealth channels face hurdles, yet progress is visible thanks to innovative products, robust education, and specialized teams. Conversations at the panel underscored the necessity of delivering top-notch investor experiences for wealth channel clients. Erwan Paugam aptly compared private wealth engagement to the airline industry—similar destinations, but with distinct client experiences.
Interestingly, a live poll during our discussion revealed that new product structures and innovation are currently more prioritized than educational efforts, suggesting a transition from knowledge-building to implementation within the industry.
Evergreen structures have emerged as a favored product for wealth channels. These frameworks simplify investments, demanding meticulous operational management to ensure seamless experiences. I asked Alisa about managing evergreen funds, to which she responded with a compelling comparison to hedge fund management, particularly in portfolio aspects.
Scale is a pivotal advantage in achieving success in this space—it facilitates capital deployment and operational efficiencies. IPEM also sparked debates on whether major firms will ultimately dominate the wealth channel due to their scale and branding power.
However, smaller or specialized firms can carve out niches too. They can excel by strategically aligning their businesses with their unique strengths, focusing on product differentiation and tailoring their market approach.
Significantly, going direct to clients through digital means is gaining traction in marketing. Authentic social media content, as demonstrated by Blackstone’s Jon Gray, offers relatable engagement with broader audiences. Building strong client relationships and communicating effectively is now an essential strategy for success.
Let’s shift gears to this week’s stellar performances in private equity versus private credit, as reported by Bloomberg’s Kat Hidalgo. Private equity has edged out its credit counterpart, driven by a rise in buyout activities and a favorable interest environment. This shift hints at a renewed interest from LPs, reinforcing private equity’s allure. Parallelly, the secondary market has witnessed a surge, with record private equity transactions, emphasizing ongoing demand for liquidity.
As private markets grow, they attract top-tier talent. Let’s explore new opportunities within major firms, spanning roles in marketing, investor relations, and business development.
Notably, AGM has crafted an index to track leading publicly traded alternative asset managers. Insights from these metrics show investors’ perceptions and capital inflow trends within private markets.
In closing, I invite you to explore exciting podcasts, articles, and new ventures captured in Alt Goes Mainstream. Stay connected by subscribing and sharing this newsletter with peers passionate about private markets evolution. If there’s more you’d like to see or discuss, reach out—I’m eager to include your recommendations in future editions or podcast features. Special thanks to Michael Rutter and Nick Owens for their invaluable contributions to this newsletter.
